A leading hotelier insisted yesterday that people in positions of responsibility who do not achieve targets they set themselves should resign, “and not stay around as if nothing happened”.
The former president of the Malta Hotels and Restaurant Association, Winston J. Zahra, was speaking after a press conference held to announce the first quarter results for the tourism sector.
Mr Zahra said that there is no way that the target of 70,000 more tourists coming to Malta this year could be achieved, adding that nobody at government level seemed to be taking any notice.
“Last year, I had predicted that the 1st quarter would be a washout and it is sad to note that the results are as expected. I fail to understand how the minister and Malta Tourism Authority chairman can remain silent on their non-performance because in every country, if you do not achieve targets you resign.”
Presenting the results for Q1, Deloitte partner Nick Captur said that occupancy levels were down in every sector with the sharpest decline occurring in the three-star sector (an 18 per cent drop) and down by six per cent in the four-star sector. The five-star segment showed more resilience and closed the quarter 0.6 per cent higher.
On a more positive note, all categories registered an increase in average achieved room rates (AARR) due to changes in business mix and higher prices where possible to offset higher costs. Total revenue per room in the five-star sector was up 15 per cent but the figure declined in the rest of the hotel industry – the three-star sector registered a 22 per cent drop.
Gross Operating Profit margins also worsened in the four-star and three-star sectors. All categories traded at a loss during Q1 but in the four and three-star segments, the loss per room increased over last year but in the five-star segment, it went down slightly.
Occupancy Levels for Q1 2006 were as follows:
Five-star: 44 per cent, 4-star: 53 per cent, three-star: 51 per cent
Average Achieved Room Rates:
Five-star: Lm29.52, 4-star: Lm8.70, three-star: Lm6.25
Gross Operating Profit per Available Room:
Five-star (Lm351), 4-star: (Lm275), three-star: Lm(211) figures in brackets denote losses per room.
MHRA spokesman Josef Mifsud said the results showed the urgent need for low cost carriers to start operating to Malta. He said the MHRA was being kept up-to-date on development between the government, Ryan Air and Easy Jet, although there had not been any new developments.
Mr Mifsud said that Q2 was not looking that good either and that the results achieved in Q1 were simply what the MHRA had been predicting for a long time. Other concerns were the cost of energy, increases in expenses and overheads, flight taxes and the lack of initiatives taken by the MTA.
Meanwhile, the Tourism Ministry issued a press release late yesterday afternoon expressing regret at the tone used by Mr Zahra during his speech. The statement said that Mr Zahra knew that the government was working hard with the private sector to ensure that more tourists visit Malta, especially in the Winter.